If Alan Greenspan had reduced the money supply to limit the housing bubble,the result would have been a:
A) slowdown in the rise of housing values.
B) slowdown in overall economic growth.
C) a slowdown in both the rise of housing values and overall economic growth.
D) neither a slowdown in the rise of housing values nor overall economic growth.

Question

Quizplus · Accepted Answer

Reducing the money supply would likely increase interest rates, making borrowing more expensive. This would slow down the rise of housing values as fewer people could afford mortgages. Additionally, higher interest rates would slow down overall economic growth by reducing spending and investment.

If Alan Greenspan Had Reduced the Money Supply to Limit